Indiabulls Securities Research has maintained its hold rating on Hindustan Unilever (HUL) in its December 9, 2008 research report. "Our DCF-based valuation gives a fair value estimate of Rs 248.51 for HUL’s share, which provides an upside of around 3.1% over the current market price of Rs 240.85. The Company trades at a PE of 24.6x for FY09, a 37% premium over the sector average of 18x. After factoring all the positives, such as an ROE of 80%, wide distribution network, and the market leadership status in certain product categories, we believe that the stock is fairly valued. As we do not expect any further upside from the current levels, we maintain our Hold rating for the stock," says Indiabulls Securities' research report.

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